Online Casino News From Around the Globe

Morgan Stanley Lowers The Estimates Of U.S. Online Gambling By 30 Percent
Mar26

Morgan Stanley Lowers The Estimates Of U.S. Online Gambling By 30 Percent

The exact value of the online gambling market in the U.S. depends on who you ask. As we speak there are only three states offering legal internet gambling but there are at least ten other states actively looking into it. It is still way too early to foresee the true potential for the U.S internet gambling market. There are still plenty of technical glitches to work out ad there are active campaigns like that of Sheldon Adelson who seek to ban online gambling. Morgan Stanley has just lowered its previous estimate of the U.S. online gambling market from an estimated $5 billion by 2017 to $3.5 billion. The highly respected Wall Street firm explained their lower estimation was due to worse than expected technical issues. The good news however is that they expect things to turn around and by 2020 the online gambling market will be worth $8 billion. The largest online gambling market so far is that of New Jersey. Here again the estimates were wild with Gov. Chris Christie being overly optimistic with his $1.2 billion estimation, Morgan Stanley have lowered their $541 million estimation to $203 for the first full year of legal online gambling in the...

Read More
Internal Revenue Service Defines Bitcoin As A Physical Commodity
Mar26

Internal Revenue Service Defines Bitcoin As A Physical Commodity

The more popular Bitcoin becomes amongst global consumers the higher the chance that governments and global banking systems will step in to ruin the party.  As we reported more and more governments are reacting to the phenomenon of virtual currencies like Bitcoin by implementing regulations and restrictions instead of working towards helping the consumer. Japan reacted to the demise of the Japanese based Mt. Gox Bitcoin exchange by simply deciding to redefine the currency as a commodity like gold or silver. This seems to be absurd as no matter how you define Bitcoin consumers are able to utilize the virtual “commodity” exactly like real currency in every which way. We have reported on the many options consumers have as more and more retail establishments, hotels and other businesses are embracing virtual currencies. Not surprising the U.S. has up to now waited on the sidelines as they decide on how to behave with Bitcoin. The U.S. government’s Internal Revenue Service (IRS) have just entered the fray defining Bitcoin and any other virtual currency as a property or commodity which will be subject to federal tax law. This in essence follows the Japanese model which downgrades Bitcoin from a virtual currency to a physical commodity which is now subject to taxation. In a statement th IRS went on to say,” In some environments, virtual currency operates like ‘real’ currency — i.e., the coin and paper money of the United States or of any other country that is designated as legal tender, circulates, and is customarily used and accepted as a medium of exchange in the country of issuance — but it does not have legal tender status in any jurisdiction.” It remains to be seen how the rest of the world will react to the growing popularity of Bitcoin. The dream of a currency with no regulatory body restricting transactions and offering significantly reduced transaction fees seems to becoming a challenge as both banks and governments are threatened by the very idea of not controlling our financial...

Read More
New Jersey’s Dream Of Becoming A Global Online Gambling Hub Gets Closer
Mar25

New Jersey’s Dream Of Becoming A Global Online Gambling Hub Gets Closer

We reported last year on Sen. Ray Lesniak’s intention to introduce a bill that would allow New Jersey online gambling operators to take international bets. At the time Lesniak was quoted as saying he wanted New Jersey to become the Mecca of online gambling. Many thought this idea was slightly far-fetched but this vision came close to approval on Monday. The state government, Wagering, Tourism and Preservation Committee approved the bill which Sen. Lesniak sponsored. The ambitious plan behind the bill is to entice international gambling companies to shift their operations to Atlantic City. Lesniak believes that New Jersey can become a global hub for online gambling. He said,” This could help make New Jersey the leader in online gaming, across the country and around the world. We could be the ‘Silicon Valley’ for high-tech gaming. We should take advantage of this dynamic opportunity for a business sector with enormous growth potential.” In terms of the bill foreign firms will have to comply with U.S. gambling laws and thus no bets could be taken from anywhere within the U.S. They would also be subject to the same 15 percent tax that New Jersey’s casinos play on online revenues. In an effort to rejuvenate New Jersey’s struggling horse racing industry the international firms will also have to contribute to an annual $20 million fun for three years aimed at sustaining the industry. Despite over 250,000 online gambling accounts having being created in New Jersey since their November launch revenues have only amounted to about $20 million in the first two months of the year. While this is understandable as online gambling in New Jersey is still in its early stages, the possibility of attracting global gambling companies could be a game changer for the Garden State. Many supporters of the bill like former mayor of Atlantic City, Jim Whelan believe that New Jersey is ideally poised to expand its casino business on a global scale due to their secure and regulated infrastructure. We will follow this development with interest as if it is approved it will certainly silence the critics who believe Gov. Chris Christie exaggerated the earning potential of online gambling in New...

Read More
Pennsylvania Loses Casino Revenues To Neighboring New Jersey Online Gambling
Mar24

Pennsylvania Loses Casino Revenues To Neighboring New Jersey Online Gambling

The state of New Jersey is considered the most profitable online gambling market in the U.S currently. With only three states offering internet gambling it stands to reason that the neighboring states would potentially lose clientele to the new online operators. One of the main justifications for states wanting to legalize online gambling is the simple fact that they are losing out to illegal offshore operators. Whether legal or not it is a simple reality that punters given the choice will gladly gamble online instead of venturing out to brick and mortar casinos. This is particularly true if there is bad weather and residents are bound to their homes. In the past eight years New Jersey lost a lot of gambling revenues to neighboring Pennsylvania. Whether it is coincidence or not, ever since New Jersey has started offering online gambling the brick and mortar casinos in Pennsylvania have been severely cut into. A spokesman for the Pennsylvania Gaming Control Board, Richard McGarvey is blaming the sudden loss on the snow no less which he says prevented gamblers for reaching the casinos. The bad weather however benefited New Jersey as who of us would not enjoy a flutter online when confined to our homes. The comfort and convenience of internet gambling cannot to be denied whether it’s raining or sunny outside. It is no surprise that many states who do not have online gambling as an option are keen to get on the moving train as without it thy will be left...

Read More
Vircurex Becomes The Latest Bitcoin Exchange To Implode
Mar23

Vircurex Becomes The Latest Bitcoin Exchange To Implode

Just when you thought it was safe to venture into virtual currencies another Bitcoin exchange is following in the footsteps of Japanese based Mt. Gox. The implosion of Mt. Gox along with hundreds of millions of dollar’s worth of Bitcoins was a major blow to the credibility and stability of virtual currencies. The main appeal of Bitcoin is without a doubt the potential to win big in a short space of time. The volatility of any commodity that can trade from $12 to $1200 in a twelve month period is the ultimate thrill for many investors or more accurately speculators. The latest Bitcoin exchange to announce it will halt all withdrawals of Bitcoin, Litecoin and other virtual currencies is the Beijing-based Vircurex. In a case of de javu ,Vircurex will from tomorrow freeze all user accounts. This is not the first time Vircurex has made the headlines for the wrong reasons as last year they were plagued by two hacking incidents. Now unlike Mt. Goxm Vircurex are not abandoning ship as of now but have come up with some sort of strategy that involves locking down its existing accounts  while gradually paying back the affected customers.  They have come up with what they call “Frozen Funds”. What his means is that customers won’t be able to withdraw or trade in this account but will gradually be paid back. In a statement released Vircurex said,” Unfortunately we had large fund withdrawals in the last weeks which have led to a complete depletion of our cold wallet balance and we are now facing the option of either closing the site with significant unrecoverable losses for all or to work out a solution that allows the exchange to continue to operate and gradually pay back the losses.” This creative” risk management tactic” adopted by Vircurex is based on the premise that new users will continue to sign up with them despite the fact that they are insolvent. It also has to ensure that they are not hacked for a third tine.  Any objective outsider would not give Vircurex a third chance but with Bitcoin mania still at its peak even this shady operation might just beat the odds and continue to...

Read More